ARK Invest and 21Shares Remove Staking Plans from Updated Spot Ether ETF Proposal

In a surprising turn of events, ARK Invest and 21Shares have decided to remove staking plans from their updated spot Ether exchange-traded fund proposal. The decision was made evident in the filing submitted on Friday, May 10, where the clause mentioning staking a portion of the fund’s assets through third-party providers was noticeably absent.

Initially, the companies had included a clause in their Feb. 7 filing, stating that 21Shares would stake a portion of the Trust’s assets and anticipated receiving ETH as a reward for staking. However, the latest filing has removed this section, sparking speculation and intrigue within the crypto community.

Bloomberg ETF analyst Eric Balchunas weighed in on the situation, suggesting that the update could be a strategic move in response to potential feedback from the SEC or a last-ditch effort to limit information available for a potential rejection. The SEC has been delaying decisions on various spot Ethereum ETF proposals, including those from Invesco Galaxy, Grayscale, Franklin Templeton, VanEck, and BlackRock.

Despite the SEC’s approval of spot Bitcoin ETFs earlier this year, the chances of a spot Ethereum ETF approval by late May have dwindled, according to Balchunas. The regulator must decide on VanEck’s spot Ethereum application by May 23, followed by ARK and 21Shares’ application on May 24.

The spot Ether ETF proposed by ARK Invest and 21Shares aims to provide direct exposure to Ether and trade on the Cboe BZX Exchange if approved. With the SEC’s upcoming decisions looming, the crypto community eagerly awaits the outcome of these high-stakes proposals.